Which of the Following Is Not a Criterion Pertaining to the Revenue

question 33

Multiple Choice

Which of the following is not a criterion pertaining to the revenue realization principle?

• A) The goods or services have been delivered.
• B) The selling price is fixed or determinable.
• C)Collection is reasonably assured.
• D)The cash payment has been receiveD.Under accrual accounting, the revenue realization principle states that revenues are recognized when goods or services are delivered, there is persuasive evidence of an arrangement for customer payment, the price is fixed or determinable, and collection is reasonably assured.

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Definitions:

Composite Units

A measurement used in accounting to collectively represent a group of similar items or transactions as a single entity.

Break-Even Point

The point at which total costs and total revenue are equal, meaning the business is neither making a profit nor a loss.

Sales Mix

The combination of different products or services that a company sells, influencing overall sales volume, revenues, and profits.

Break-Even Point

The level of production or sales at which total costs equal total revenue, resulting in zero profit or loss.